Uninsured/ Underinsured Motor Vehicle Coverage
Posted by admin on May 20, 2010 | 2 Comments
What happens if you get into an accident with a driver who is uninsured or underinsured, will you be able to recover?
If you have uninsured/underinsured motorist coverage, chances are good that the answer is “yes.”
What is UM or UIM?
Uninsured or underinsured motorist coverage can pay for injuries to you and your passengers, and in some states, for damage to your property, when there is an accident and the other driver is both legally responsible for the accident and considered “uninsured” or “underinsured.”
An uninsured driver is someone who did not have any insurance, had insurance that did not meet state-mandated minimum liability requirements, or whose insurance company denied their claim or was not financially able to pay it.
An underinsured driver is someone who had insurance that met minimum legal requirements, but did not have payment limits high enough to pay for the damage caused by the accident. In these situations, UM or UIM can pay you for your damages. It is important to note that uninsured and underinsured motorist coverages are separate, although in many states they can or must be purchased together.
Why Would You Want It?
It’s usually relatively inexpensive to add this coverage to your car insurance, but the protection it offers can be well worth it. The coverage could pay your medical bills, lost wages, and pain and suffering. If someone hits you or your car and is legally responsible for the damages, you won’t get any money from them if they don’t have money to give you. During these tough economic times, many drivers either do not have insurance or do not have enough insurance. UM/UIM coverage is one way to protect yourself.
Filed Under: Insurance Issues, Motor Vehicle Accidents
